Thousands of Western Australian homeowners are pursuing legal action against BGC Housing Group, alleging unreasonable delays and cost overruns that have left families in limbo for years.
The class action, launched in 2023, which involves about 800 registered participants, though lawyers estimate up to 7,000 customers could ultimately benefit if the case succeeds. The potential payout exceeds $100 million, according to court documents and legal representatives.
Jo and David Dimov represent many affected homeowners. The couple signed with a BGC subsidiary in late 2022, and their slab was laid in January 2024. Nearly two years later, their South West property remains unfinished.
“I have seen entire subdivisions go up in the time our house has been built,” David Dimov told ABC South West WA.
His wife Jo described the emotional toll: “It’s been disheartening, there has been tears … The stress and the pressure on our family unit, it’s been pretty hard.”
The Dimovs joined the class action seeking accountability from the major builder.
Spencer Lieberfreund, the lawyer supporting claimants, said the legal action addresses delays and cost increases “that shouldn’t have happened.”
“We started to get a number of people coming to see us individually with complaints about delays in their construction, we saw they were all BGC homeowners and it snowballed from there,” Lieberfreund said.
According to earlier reports from ABC Radio Perth, BGC signed contracts with 1,000 customers in July 2020 alone – more than any other Australian builder that month. The class action covers contracts signed between July 2019 and June 2022.
Domenica Vecchio, who signed her BGC contract in June 2020, waited 33 months for completion and paid an additional $10,000. She cited severe impacts on participants: “For a lot of other people in the class action it was homelessness, relationship break-ups, suicidal ideations, job losses.”
BGC stopped accepting new residential home orders in April 2023 to focus on existing projects, including builds linked to the McGowan government’s COVID-19 Building Bonus Grants program.
A company spokesperson confirmed 61 residential homes for retail customers remain incomplete across Western Australia, including one in the South West.
“Each of these homes is continuing to achieve progress towards key handover every day,” the spokesperson said, adding that the company has not recommenced taking new sales.
Lieberfreund said compensation would address financial losses, including additional rent payments, extra mortgage interest, and lost rental income for investors unable to lease unfinished properties.
The legal action is funded by Omni Bridgeway, meaning homeowners face no upfront costs.
Jo Dimov called for stronger oversight: “Even if it’s just a spot check, ‘Surprise, we’re here to check to make sure that you’re doing the right job’ … then I feel like maybe some of these builders would be a little bit more accountable.”
The Western Australian government has committed to mandatory building inspections for apartment builds from 2026 but has not set a timeline for similar requirements for detached residential homes.
